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US stocks rise on corporate profit

New York - Wall Street stocks Tuesday opened higher on a stream of generally solid earnings reports that suggest the US economy is continuing to pick up momentum.

Five minutes into trade, the Dow Jones Industrial Average advanced 40.55 points (0.24 percent) to 17,092.28.

The US bourse is set to open higher as European leaders get ready to meet. Credit: REUTERS

The broad-based S&P 500 gained 8.17 (0.41 percent) to 1,981.80, while the tech-rich Nasdaq Composite Index rose 25.05 (0.57

percent) to 4,449.76.

Dow component McDonald's fell 2.3 percent as it reported second-quarter earnings of $1.40 per share, four cents below expectations. The fast-food giant pointed to lower comparable sales in the US and Europe.

United Technologies, a Dow component that provides technology and services to the building and aerospace industries, said earnings jumped 7.7 percent to $1.7 billion, beating analyst expectations. Shares slipped 0.4 percent.

Gainers following earnings reports included Lockheed Martin (+1.9 percent) and Chipotle Mexican Grill (+11.5 percent).

“The overall takeaway is that the earnings reporting period is off to a good start,” said Briefing.com analyst Patrick O'Hare.

“Most companies are doing what they normally do during an earnings reporting period, which is report better-than-expected results through a combination of demand growth, cost cutting, and/or share repurchase activity.” - Sapa-AFP

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